Future of cash after the Covid 19 pandemic in Ireland Essay Sample
There is an outbreak of covid 19 pandaemic this year around the globe which has taken millions of life. People have lost their jobs and there is worst phase of recession that is being faced by the world economy.
We will broadly discuss about the future of tangible cash after the pandaemic and digital cashless transactions. Online financial transactions were already there before the pandaemic but now it has become necessary with time.
Physical cash transactions has become very limited as a result of fear of being directly exposed to virus.
Digital currency and digital use of applications for any financial transactions are used now in place of cash. In Ireland there are also many online applications for transferring money and doing any financial transactions. Digitalised banking, digital currency, digital pay wallets, online applications like Revolut, Paypal Mobile Cash is used in Ireland widely.
Benefits of becoming a cashless society
There are many benefits that can be accrued by people by replacing a tangible legal tender with a cashless system in society.
Low rate of crimes and physical theft of money
The rate of crime goes down as there is an increase in demand of cashless applications. There will be no physical theft of money, pickpocketing, bank robbery, house breaks to do cash and gold robbery. It will lower the risk of money being stolen and a decrease in the number of thefts.
Aids in international transactions
Going cashless helps in the international market transactions and making payments in a foreign land. It does not make us vulnerable by providing a great exchange rate.
Digital banks help in making digital payments in a foreign country without having to worry about money. One will never run short of cash in a foreign place.
Rise of Digital Banking
Digital banks is different than the traditional concept of banks. They help the customers to do all their bank work at a digital platform and also avail digital services of the bank.
One will not have to physically be present in the bank which helps in saving time and better handling of paper money.
They can get their money deposits, account services, loan management, transfer, and withdrawal and buy financial products. It helps in financial management, security, true value, and cost-efficiency.
No illegal financial transactions and laundering
There shall be no money laundering, financial frauds, less illegal transactions, misappropriation of funds, and counterfeiting of coins.
Drawbacks of becoming a cashless society
Undoubtedly there will be benefits of a cashless system but it will also have few drawbacks. Such drawbacks need to be considered by the government before any complete elimination of cash.
No physical control of finances
People are very much accustomed to the usage of cash and may find difficulty in controlling their finances. They will not have easy access to track their finances and spending which can make them confused. Less direct physical control of money means lacking in a sense of power which can increase the spending habits of people with no savings.
Unreliability of technology
Sometimes users face technical errors in the system and in the network. Crashing of websites, malfunctioning of web servers can make money go out of control for the users. It causes nonaccessibility and no cash in hand in case of emergency.
Cashless system causing an economic divide
This can create a huge impact on the people who come from an underprivileged class of society. Such people may not be able to afford electronic devices, computers, and phones to do any financial transactions.
They may even not have a permanent address and a bank account which further makes the process of cashless system difficult.
Risk of Online Hacking
Hackers can easily get access to the bank accounts, get financial details of the user, and drain their money from accounts.
They get accessibility to the confidential information and transactions of the user. So it helps them to commit digital theft leaving no alternative source of money.
Usage of the digital cryptocurrency for cashless transactions
One of the most famous digital cryptocurrency used globally these days is Bitcoin. Digital wallets, Apple Pay, Google Pay, and NFC Payments are also introduced for making payments.
In Ireland, there are also some popular Bitcoin trading applications and they are – Coinbase, Wallet app, Brightcove, Coinmama, Changelly.
Bitcoin is basically used for trading with cash or assets by paying a small amount. It has high liquidity which makes it beneficial for a short-term profit. Virtual currency and cryptocurrency are the two types of digital currency available.
Cryptocurrency: has a real-life value like cash. They are a combination of mathematical algorithms with tokens being transferred electronically over the network. It is decentralized with no agency to regulate and the economy of the country does not impact cryptocurrency.
Bitcoin(BTC): Bitcoin Cash, Litecoin, Binance Coin, Ripple, Monero, Ethereum (ETH), Tron are some of the bitcoin traders across the globe.
Advantages of Bitcoin usage
- Liquidity – Bitcoin is the best liquidity investment as it has the best online platforms for trading and exchange globally. It can be used easily by exchanging cash or assets. A high level of liquidity means short term investments and profit of the people.
- Low risk of inflation – Blockchain system is infinite and people investing in them do not need to worry about the loss of money. Economy and inflation rates in the country do not impact the cryptocurrency users.
- New Opportunities – Bitcoin was introduced in 2009 and is comparatively a new investment method. They have new coins used on a regular basis which can create new opportunities and financial gains.
- A simple system of trade – In the stock trading market one needs a certificate, charges are levied upon them, and a broker to help them buy and sell shares. But bitcoin trading is simple as it includes only direct buying and selling through exchanges.
Disadvantages of Bitcoin usage
- Unpredictable market – With an unpredictable and prices going up and down there is no guarantee of safe & profitable return of investment. One may face a huge loss if no close tracking and knowledge of the bitcoin trading market.
- Less usage of Bitcoin – There is no complete acceptance of bitcoin as a legal tender by many companies. It makes it a vulnerable investment vessel. It is no taxed so it may expose its users to fraud and malpractice easily.
- Online Hacking – Investors in bitcoin are much vulnerable to online hacking. Buying and selling of bitcoins are on the smartphones devices so it is exposed to online theft and is not insured by FDIC.
- No other source of money – Any virus can corrupt the wallet file and crash harddrive which will make users lose bitcoins in a second. In such a case there is also no alternative source of money for the users.
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This Sample essay mentioned above is based on the future of cash in the coronavirus situation and a cashless system of society. The sample is strictly dealing with the financial and economic situation of the country and its cash value.
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